$POOL · POOL CORP
Pool Corp filed its 10-Q for Q3 FY2026, reporting net sales of $1.505B (+3.7% YoY), net income of $123M (-3.1% YoY), and diluted EPS of $3.40 (flat YoY). Gross margin declined to 29.0% from 29.6%, while SG&A rose 5.1% to $264.1M, compressing operating income to $172.2M from $178.0M. The company benefited from above-average temperatures and below-average precipitation across key markets.
- Q3 net sales rose 3.7% YoY to $1.505B, driven by above-average temperatures and favorable weather across key U.S. markets.
- Diluted EPS was flat at $3.40 vs. $3.40 a year ago; net income fell 3.1% to $123M.
- Gross margin contracted to 29.0% from 29.6% a year ago; operating margin slipped to 11.4% from 12.3%.
- Selling and administrative expenses grew 5.1% to $264.1M, outpacing revenue growth and compressing operating income.
- Share repurchases totaled $198M in the first nine months, reducing basic share count by 3.3% YoY to 35.9M.
Stock down 1.62% to $191.75 in regular trading, a modest negative reaction consistent with flat EPS and margin compression despite the revenue beat. The $6.97B market cap limits dramatic moves on a routine quarterly filing.
Flat EPS despite 3.7% revenue growth signals margin erosion — SG&A is growing faster than sales, a trend that matters for a mature distributor trading at a premium multiple.
Pool Corp's results reflect the seasonal, weather-driven nature of the pool supply distribution industry. Favorable Q3 weather boosted top-line growth, but cost inflation in selling and administrative expenses is a headwind shared across the sector.
Weather dependency remains the dominant external risk — unseasonably cool or rainy conditions can compress the pool season and reduce chemical/supply purchases. Rising SG&A expenses outpacing revenue growth also pressures margins.